New Zealand’s politically contentious planning environment is being tested by challenges such as traffic congestion, demographic change, and inadequate social housing. The newly-amalgamated Auckland Council (AC) promotes transit-oriented inner-city development, but related infrastructure projects are financially reliant on a central government sympathetic to suburban sprawl. Answerable more to the latter, New Zealand’s central social housing provider (HNZC) is intensifying suburban stock to optimize asset performance. However, this strategy exacerbates spatial imbalances between housing and employment while largely ignoring demand for smaller units. This paper examines how local-central political conflicts manifest themselves in contrasting growth visions, and proposes a solution that balances interests. It begins with a background about evolving social housing demand in New Zealand, reviews strategic priorities of politico-institutional actors, and concludes with an analysis supporting broadly applicable policy proposals. The recommendation is for AC, in cooperation with HNZC, to exploit social housing development opportunities around urban transit nodes.